e-TDS
Entities (both corporate and non-corporate deductors) making payments (specified under Income Tax Act) to third parties (deductees) are required to deduct tax at source (Tax Deducted at Source -TDS) from these payments and deposit the same at any of the designated branches of banks authorised to collect taxes on behalf of Government of India. They should also furnish TDS returns containing details of deductee(s) and challan details relating to deposit of tax to ITD.
It is mandatory (w.e.f. June 1, 2003) for corporate deductors to furnish their TDS returns in electronic form (e-TDS return).
From F.Y. 2004-2005 onwards furnishing TDS returns in electronic form is also mandatory for government deductors in addition to corporate deductors.
Deductors (other than government and corporates) may file TDS return in electronic or physical form.
National Securities Depository Ltd. (NSDL) as the e- TDS Intermediary (appointed by ITD) receives, on behalf of ITD, the e-TDS returns from the deductors.
Deductors can submit e-TDS returns through TIN-Facilitation Centres (TIN-FC) established by NSDL or directly upload through NSDL web-site.
e-TCS
TCS means collection of tax at source by the seller (collector) from the buyer (collectee/payee) of the goods (specified u/s 206C of Income-tax Act, 1961, like timber obtained under forest lease, scrap, any other forest produce not being timber or tendu leaves etc.,). For e.g. if purchase value of goods is Rs.10,000/-, the buyer will pay an amount of Rs.10,000/- + X (X being the value of TCS as prescribed under Income-tax Act, 1961) to the seller. The seller will deposit the tax collected at source (TCS) at any of the designated branches of the authorised banks.
Corporates, Government Departments / Organisations - mandatory to file in electronic form Other deductors - may file in electronic form or in physical form
Form 27A to be filed in physical form with each e-TDS return and Form 27B to be filed in physical form with each e-TCS return submitted through TIN-FC
Corporates, Government Departments / Organisations - mandatory to file in electronic form Other deductors - may file in electronic form or in physical form
Form 27A to be filed in physical form with each return submitted through TIN-FC
*Forms for TDS/TCS returns have been revised by ITD. Corresponding file formats for e-TDS (Form 24, 26, 27) and e-TCS (Form 27E) have been notified by ITD and have come into effect from May 1, 2005.
**e-TDS/e-TCS returns will be filed quarterly for F.Y. 2005-2006. The file formats for quarterly returns (Forms 24Q, 26Q, 27Q and 27EQ) have been notified by the ITD and have been made available on NSDL web-site.
Deductors furnishing e-TDS/ e-TCS returns are required to furnish a control chart - Form 27A/ 27B in physical form along with the e-TDS/e-TCS return furnished in CD/floppy.
Form 27A is a summary of TDS return (Form 24, 26 or 27), which contains control totals of 'Amount Paid' and 'Income tax deducted at source'.
Form 27B is a summary of e-TCS return (Form 27E) which contains 'Amount Paid' and 'Income Tax Collected at Source'. The control totals mentioned on Form 27A/ 27B should match with the corresponding control totals in e-TDS/e-TCS return file. Form 27A is required to be furnished separately for each TDS return (Form 24, 26 or 27). Form 27B is required to be furnished separately for each TCS return (Form 27E)
Procedures and guidelines for preparing and furnishing e-TDS/e-TCS return are given in Deductors Manual available at downloads section.
NSDL has developed a freely downloadable utility called File Validation Utility to verify whether the e-TDS/e-TCS return files prepared by the deductors/ collectors conform to the prescribed format.
